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Debt Recovery, Restructuring & Insolvency

CM Advocates > Debt Recovery, Restructuring & Insolvency

Corporate Insolvency: Administration-Death by a Thousand Cuts OR Corporate Rescue Measure?

corporate insolvency

An Administration Order can only be granted by the Insolvency Court once the conditions under Section 531 of the Insolvency Act are satisfied, to wit, a company is unable to pay its debts and if the order is made, the company is reasonably likely to achieve an objective of the administration....

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The Duties of Directors in a Financially Distressed or Insolvent Company in Kenya

As therein indicated, under section 143 of the Companies Act, a director must act in the way which he considers, in good faith, would be most likely to promote the success of the company for the benefit of its members (shareholders) as a whole. ...

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Financial distress not a sufficient reason for grant of an Administration Order; an exposition of Section 531 of the Insolvency Act, 2015

The Insolvency Act, 2015 (hereinafter referred to as “the Act) introduced the option of placement of a company under administration as opposed to the making of a liquidation order as soon as a company presents signs of insolvency....

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PRE-INSOLVENCY MORATORIUM The Stopgap Solution for Financially Distressed Companies

The existence of any business depends on how best it is managed, and the strategies put in place to ensure its eternity. To stay in business and possibly grow, companies take credit which in some instances remain unpaid when a company is facing financial challenges....

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Prejudicial Dispositions: Remedies Available to Creditors as a Result of Prejudicial Dispositions By Debtors

What are Prejudicial Dispositions? This refers to a disposition of land either by sale, charge, transfer, partition, exchange, assignment, surrender or a lease by a debtor who is unable to pay its creditors in an attempt to delay or defeat the exercise by his creditors of any right of recourse to that land. ...

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